In article , yodaatk writes
Hi,
>
>At present, due to my parents divorce my sister and I own 35% of my
>mothers house and the mortgage will be paid for in full this July. >
>The value of the property is at the moment is £140K and should
>anything happen to my mother my sister and I would inherit the full >property. >
>My sister lives in the USA and will not be returning to this country no
>matter what happens.
>
>The Question is could I buy my mothers house for £75K, my mother would
>then give my sister the money as a gift. My Mother would then live in
>the house rent-free. Is this legal and what are the Tax implications?
>The whole family is agreement with this plan and as I am in the
>military do not need any housing myself till 2014.
>
>The plan then would be to buy another small property for my mother, as
>she would then be 80
>
>Any help on this subject would be greatly received
>
>Many Thanks
>
>Peter.
The tax authorities have powers to see through transactions conducted at less than true market value and to assess liabilities accordingly
I have added uk.finance to my reply as that is probably a better place to pose your question.